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Teachers can purchase different types of service credit in the retirement system, including:
- Previously withdrawn credit from prior service in Texas
- Out-of-state service (up to 15 years)
- Military service (up to five years)
- Credit for accumulated sick leave (one year of credit for 50 unused leave days)
- Developmental leave (up to two years)
- Work experience (for career/technology teachers only; up to two years)
There are limits on the aggregate amount of time purchased, and the cost of different types of service credit varies among individuals (TRS can provide assistance in calculating the cost). Purchased special service credit counts toward the requirement to meet the Rule of 80 for TRS-Care eligibility.
The 2005 legislation repealed the ability to purchase “air time” beginning Jan. 1, 2006. Air time is credit for which no service was required; the employee must have at least seven years of service and could purchase up to three years. An employee who entered into an agreement to purchase air time by Dec. 31, 2005, will be allowed to do so.
Out-of-state credit will become much more expensive under the 2005 law, for those who do not meet the following “grandfather” exemption. An employee who was a TRS member as of Dec. 31, 2005, with previous out-of-state service credit, will be allowed to purchase that credit at the current reduced rate. Employees entering the system after Dec. 31, 2005, will pay the actuarial cost of the out-of-state service, making it considerably more expensive to purchase.
